The New Zealand dollar climbed to a new fresh week high of 0.7115 on Wednesday after the RBNZ meeting. The central bank left the key benchmark rate unchanged at 0.25%, reassuring that it is ready to lower rates further if needed. RBNZ Monetary Policy Committee noted the continued uncertainty in the global economy amid still strong epidemiological risks and existing restrictions on tourism and supply.
Wall Street ended mixed on Tuesday after US FDA’s advisory on halting coronavirus vaccinations with the Johnson & Johnson vaccine. Meanwhile, Nasdaq 100 index reached a new record high supported by the tech stocks rally.
Today the investors are eagerly waiting for the listing of the most anticipated IPO of this year Coinbase on the Nasdaq exchange under the ticker symbol "COIN".
Crude oil prices trading higher on Wednesday boosted by better-than-expected API inventory data and OPEC monthly report. OPEC monthly report showed an improved world oil demand outlook. According to the latest API report, the crude inventories in the US fell by 3.608 million barrels in the week ended April 9th of 2021.
In the currency market, the EURUSD trading steady above 1.1960 ahead of ECB President Lagarde's speech. While the British pound rebounded back to above 1.38 after the pair once again found strong buyers below 1.3700.
The safe-haven metal climb to a fresh session high of $1748 on concerns of imminent Fed tapering after a spike in March U.S. consumer inflation.
On the data front, US inflation increased by 2.6% in March from 1.7% in Feb. On the other hand, the Investor sentiment in Germany dropped in April, falling to 70.6 from the last reading of 76.6.
Moving ahead to the North American session, the investors and traders will closely monitor the speech from ECB President Christine Lagarde and Fed Chair Jerome Powell.
Worldwide, more than 136.2 million people have been confirmed infected and more than 2.9 million have died. The United States has confirmed over 31 million cases and has had more than 562,000 deaths from COVID-19, the highest totals in the world. India reports 161,736 new cases for the past 24 hours, slightly down from the record 168,912 of the previous day.
EUR/USD: The currency pair surged to a fresh session high of 1.1972 after the US dollar index break below the 92 areas.
The important levels to watch for today: Support- 1.1930 and 1.1900 Resistance- 1.1980 and 1.2010.
GOLD: The yellow metal rebounded from the previous session low after the US inflation data. Overall, momentum remains bullish throughout the European session.
The important levels to watch for today: Support- 1736 and 1730 Resistance- 1750 and 1760.
Quote of the day: Limit your size in any position so that fear does not become the prevailing instinct guiding your judgment - Joe Vidich.